Articles in Category: Fixed Rate Mortgage

November 5, 2021

Who Can Apply For An FHA Mortgage?

Who can apply for an FHA mortgage? Anyone can apply. Not all are accepted, obviously but there are few restrictions on who can be considered for an FHA mortgage. One of the main restrictions? Applicants with FICO scores below 500–FICO scores below that can never qualify for an FHA mortgage. Another restriction–you must be in the country legally. You do NOT have to be a citizen of the United States to qualify for an FHA mortgage loan, but you do have to provide documentation that shows your status as a resident, non-resident alien (the official term at press time) refugee, or asylum seeker. Your ability to qualify for the FHA home loan program depends on being able to show documentation of your status as a legal resident, etc. Another restriction | more...

November 2, 2021

Buying A Second Home?

By Joe Wallace

There is a myth about FHA home loans you might even believe yourself. Some believe that FHA home loans, with their low 3.5% down payment, are set aside strictly for first-time homebuyers who need help via a lower down payment than many conventional loans might require. What is the reality about the notion that FHA home loans are for first-time buyers only? FHA mortgages are NOT restricted to those who have never owned a home before. They are also not restricted to low or moderate-income applicants. One reason for these prevailing myths about FHA mortgages? Likely that many state or local first-time homebuyer programs may be commonly used with government-backed mortgage programs like the USDA and FHA home loan programs. By association, some might assume that the loan is intended | more...

October 29, 2021

How To Get An FHA Mortgage Loan As A First-Time Home Buyer

By Joe Wallace

How can a first-time home buyer qualify for an FHA mortgage loan? To use an FHA mortgage you do NOT have to be a first-time buyer, but if you ARE one you may qualify for state or local down payment assistance programs in your area and it’s a good idea to explore those options if they are open to you. If you are looking for a starter home, a home to grow into, or you want to have a home built especially for you (using an FHA One-Time Close construction mortgage loan), your FHA loan options are impressive. How To Qualify For An FHA loan As A First-Time Home Buyer Plan ahead and start early for your home ownership journey. Start at least a year in advance…that’s the best advice | more...

October 28, 2021

FHA Loan Limits For 2022

By Bruce Reichstein

What do you need to know about FHA home loan limits in 2022? It may sound a bit early to be discussing FHA loan limits by county, but at the beginning of 2021, potential FHA borrowers were treated to the news that FHA limits would be higher for the new year, giving many a chance to get more home loan for their efforts. What do you need to know about FHA home loan limits for the coming new year? We’re just over 60 days away at press time, 2022 will be here sooner than you realize! FHA home loans feature loan guaranty limits established every year, set by county. These are annual limits and are revised or considered for revision over the year before. There are no guarantees that the | more...

October 27, 2021

How You Can Use An FHA Home Loan

By Joe Wallace

Do you need to know what you are allowed (or NOT allowed) to do with an FHA mortgage? If you want to purchase a home with an FHA loan, you can buy a fixer-upper, a typical suburban home ready to move into, or even build your home from the ground up on your own lot using an FHA One-Time Close construction mortgage. But there are some things you are not allowed to do with an FHA home loan. Let’s look at the “can” and “cannot” angles to see what’s possible with an FHA mortgage. You CAN Purchase A Multi-Unit Property With An FHA Mortgage FHA home loans are for properties with one to four units. FHA home loan limits are larger for homes bigger than a single unit. Some borrowers | more...

October 14, 2021

Applying For An FHA Mortgage: Timing Counts

By Joe Wallace

If you are shopping for a new home, you want to be as informed as possible about your home loan options, rights, and responsibilities. Some begin their loan application process without being fully prepared, and this can wind up slowing down or even stopping a home loan application in its’ tracks. But how? One big mistake you should avoid making before applying for an FHA mortgage? Applying too soon. If you have financial trouble in your credit report from past issues, the date of your last late or missed payment is an important one–lenders generally want to see at least 12 months of on-time payments on your financial obligations. If you don’t have that record, it’s a good idea to wait to apply for a home loan until you do. | more...

October 12, 2021

Planning Your FHA Home Loan

By Joe Wallace

FHA home loans appeal to some differently than others–some buyers like the low 3.5% down payment (the lowest possible for an FHA mortgage for those who qualify) and for other buyers, the more flexible qualifications for loan approval are the main draw. One thing that’s crucial to remember about FHA loans? You do NOT need to meet a first-time homebuyer requirement to apply and be approved. Some consumers still, after all this time, mistakenly believe that FHA loans are only for those who have never owned a home before. That is NOT TRUE. When planning an FHA mortgage, it’s important to start considering your financial needs and goals as early as you can. Your decisions in this area may make your FHA loan options more obvious or attainable depending on | more...

October 8, 2021

Important Issues About Buying A Home With An FHA Loan

By Bruce Reichstein

What are your concerns about buying a home with an FHA home loan? For some, it’s about how much the loan will cost month-to-month, while for others the issue of the loan’s long-term cost can be a worry. If you aren’t sure how the FHA home loan program works, you’ll definitely want to read on. What You Can Buy With An FHA Mortgage In general, FHA home loans are for owner/occupiers who want to buy a home to use as their primary residence. You can buy a property with as many as four units as long as it meets FHA minimum standards and you are financially qualified for the mortgage loan. FHA loan applicants may apply for any type of FHA loan offered by a participating lender including mobile home | more...

September 21, 2021

Should I Make Two Mortgage Payments Each Month?

By Joe Wallace

Why do some borrowers–those applying for FHA loans or otherwise–choose to make bi-weekly payments on a mortgage? That is, why do some choose to pay two mortgage payments each month? Paying ahead on an FHA home loan is not a new idea nor is it a bad one. There are those who pay more on their home loans each month to gradually whittle down the amount they owe on the loan so that payoff comes earlier. And there are several ways to do that, as we’ll explore below. Unlike some other types of loans, FHA mortgages do not come with a pre-payment penalty and you cannot be billed extra for early payoff of the FHA loan amount. The multiple ways to pay ahead and pay down your mortgage earlier than | more...

September 17, 2021

FHA Loans Versus Conventional Home Loans

By Bruce Reichstein

If you are planning to look at real estate listings soon or use the help of a realtor to locate a new home, here are some questions to ask yourself about your new home loan; the answers will help you decide whether to pursue an FHA mortgage, a conventional loan, etc. FHA Mortgage Versus Conventional Home Loans: Compare Down Payments Make sure you know your FICO scores in advance of comparing down payment requirements since the amount of cash you will be required to put down is affected by credit scores when those scores are below a specific cutoff. There is more than one standard for FICO scores in this area-FHA loan minimums and lender requirements. Lender standards will apply no matter whether you are applying for FHA or conventional | more...